What is the expected rate of inflation

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Reference no: EM131831110

1. If the nominal rate of interest is 13.68 % and the real rate of interest is 7.61 %, what is the expected rate of inflation? The expected rate of inflation is ______%. ? (Round to two decimal places.)

2. What is the price of a 5-year, 8.2 % coupon rate, $1,000 face value bond that pays interest annually if the yield to maturity on similar bonds is % 7.4% ?

The price of the bond is $ _______. (Round to the nearest cent.)

Reference no: EM131831110

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